Sherwin Williams will receive $18,250 a year for the next 15 years as a result of a picture he has painted. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b. Should he be willing to sell out his future rights now for $161,000?